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Nuvama stays positive on auto sector ahead of Q2 FY27 results
The brokerage expects industry volumes to drive 27% revenue growth, while it projects EBITDA growth capped near 10% due to cost inflation weighing on margins.
LiveMint Markets, citing Nuvama Institutional Equities, says the brokerage remains positive on India’s auto sector ahead of upcoming Q2 FY27 results, pointing to healthy demand, a strong launch pipeline, Pay Commission impact, and reasonable valuations.
Nuvama expects revenue to grow about 27% supported by industry volumes, but it warns cost inflation is likely to weigh on margins, limiting EBITDA growth to roughly 10%.
The brokerage highlights Hyundai Motor India, Tata Motors Passenger Vehicles, Eicher Motors, Samvardhana Motherson International, Minda Corporation, Motherson Wiring India, and ASK Automotive among its top picks, and it shows Buy ratings across most two-wheelers, OEMs, and several auto-ancillary names, with Escorts Kubota rated Hold.